LULULEMON || Full Year Fiscal 2019 Results

The Company ended fiscal 2019 with $1.1 billion in cash and cash equivalents compared to $881.3 million at the end of fiscal 2018. Inventories at the end of fiscal 2019 increased by 28% to $518.5 million compared to $404.8 million at the end of fiscal 2018. The Company ended the year with 491 stores.

Calvin McDonald, Chief Executive Officer, commented: “2019 was a strong year for lululemon, as our teams executed against our Power of Three growth plan. We are now navigating an extraordinary environment, which is currently impacting our business. The strength of our brand and strong financial position will help us manage through the day-to-day, while continuing to effectively plan for and invest in our future.” McDonald continued: “I want to thank our people around the globe for the results they delivered in 2019, and for their perseverance and commitment to our brand each and every day.”

Income tax expense was $251.8 million compared to $231.4 million in fiscal 2018 and the effective tax rate was 28.1% compared to 32.4% for fiscal 2018. The adjusted effective tax rate for fiscal 2018 was 28.0%.

Diluted earnings per share were $4.93 compared to $3.61 in fiscal 2018. Adjusted diluted earnings per share in fiscal 2018 were $3.84.

The Company repurchased 1.1 million shares of its own common stock at an average cost of $164.26 per share in fiscal 2019.

The Company ended fiscal 2019 with $1.1 billion in cash and cash equivalents compared to $881.3 million at the end of fiscal 2018. Inventories at the end of fiscal 2019 increased by 28% to $518.5 million compared to $404.8 million at the end of fiscal 2018. The Company ended the year with 491 stores.

COVID-19 Coronavirus

The outbreak of the COVID-19 coronavirus has been declared a pandemic by the World Health Organization and continues to spread in the United States, Canada, and in many other countries globally. Subsequent to February 2, 2020, in line with recommendations by public health officials and in accordance with governmental authority orders, we have taken actions to close certain retail locations and to reduce operating hours. We continue to monitor the situation and work closely with local authorities to prioritize the safety of our people and guests.

In February 2020, we temporarily closed all of our retail locations in Mainland China. All but one of these locations have since reopened. In March 2020, we temporarily closed all of our retail locations in North America, Europe, Malaysia, New Zealand, and we temporarily closed our distribution center in Sumner, WA. These locations currently remain closed.

Fiscal 2020 Outlook

Due to the impact that COVID-19 is having across the globe, and the rapid and continuous developments, we are not providing guidance for fiscal 2020 at this time. We will provide additional updates as the situation warrants.